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Docusign Envelope ID:56F5B9B3-CE4D-4E2F-8071-A7ESFBAAD88B <br /> 1.8.1 During its annual budget process, MWDOC shall allocate to the City a <br /> proportionate share of MWDOC's estimated WUE Program costs ("Choice Costs"). This share of <br /> MWDOC's estimated WUE Program costs shall be determined by dividing the total outside <br /> funding provided during the previous calendar year to WUE Program participants within the City's <br /> service area by the total outside funding provided during the previous calendar year to WUE <br /> Program participants within the service area of all MWDOC member agencies and other agency <br /> participants. That percentage is then applied to MWDOC's total WUE "choice" program budget, <br /> including personnel and overhead costs.An example of the annual reconciliation process is shown <br /> in Exhibit C. <br /> 1.8.2 MWDOC shall invoice the City for Choice Costs,which do not include the <br /> WUE Program administration and funding costs described below in Section 1.8.4, no later than <br /> September 30 of each year, and the City shall pay the amount due within forty-five (45) days of <br /> receipt of the invoice. MWDOC must be notified of any disputed invoice within thirty (30) days <br /> of receipt. An invoice template is shown in Exhibit B, which is attached hereto and incorporated <br /> by reference. <br /> 1.8.3 With regard to the Choice Costs referenced in Section 1.8.2 above, a <br /> reconciliation of actual WUE Program costs will be performed at the end of each year during <br /> MWDOC's budget process, and any debts or credits will be reflected in the invoice sent to the City <br /> the following year. <br /> 1.8.4 MWDOC shall invoice the City on a monthly basis for supplemental <br /> funding or enhanced incentives pursuant to Section 1.5.1.These costs are separate from the Choice <br /> Costs. <br /> 2. Shared Consulting Services <br /> 2.1 The Parties shall continue to participate in and find collective efforts in planning, <br /> research, policy development, and other activities that require engagement of an outside <br /> consultant. MWDOC shall provide the City a copy of each consultant's proposal for review and <br /> comments. For each consultant so engaged, the City will notify MWDOC in writing if it elects to <br /> participate in the consulting services and the limit of its financial participation,The City shall have <br /> no obligation to pay for any consultant unless the City has agreed to participate in writing and shall <br /> not be responsible for paying any costs above the City's identified limit. <br /> 2.2 Water Resource Planning <br /> 2.2.1 Subject Section 2.1, the Parties may participate, without the need for an <br /> additional agreement, in joint activities and studies designed to ensure water supply and system <br /> reliability, including but not limited to, water reliability analyses, water supply and demand <br /> projections, master planning for water use efficiency,water system loss analysis and leak detection <br /> studies, preparation of urban water management plans and drought contingency plans, demand <br /> management studies, and studies related to water transfers,water recycling,groundwater recovery, <br /> and water storage programs. <br /> 2.2.2 The Parties may participate, without the need for an additional agreement, <br /> in joint activities and studies related to system reliability efforts for emergency response. <br /> Page G of 14 <br /> 5 5401.00000\43 832934.1 <br />